Mobile Devices in Brazil: customers are more willing to switch mobile provider
Brazilian consumers are more likely to change mobile operator customers in comparison to other countries, according to a study released recently by the equipment manufacturer Nokia.
According to the survey that reached 12,000 users from 11 countries, 67% of Brazilian consumers switched provider in the last five years and 48% were shown to be willing to change in the next 12 months. Worldwide, this figure is less than 40%. In countries like Russia and the United States, it is about 27%, the survey showed.
According to Fernando Carvalho, director of strategy and development of the Nokia business to Latin America, the perception of quality is crucial to the decision to switch operator factor. “This happens while the customer is getting more sophisticated,” he said. “Habits of Brazilian customers are becoming similar to the European and American customers.”
The survey revealed that the percentage of users of mobile devices contained in the so-called “heavy users” rose from 57% in Brazil in 2012 to 64% in 2013, similar numbers of developed countries such as England level, where the percentage is 66 %.
Consumers that are considered heavy users use at least two of the following services once a week on a mobile device: video calling, instant messaging and chat, web browsing, downloading or uploading files, online games, mobile payment, mobile TV services based on location or GPS and augmented reality applications.
Quality is the main factor for retaining 41% of consumers, compared to 29% in mature countries considered in mobile telephony (Spain, Italy, United Kingdom, United States, Canada and Korea). The category price and charge was identified as most important for 33% of users in Brazil.
“Since privatization, operators in Brazil are in a battle for users. Then the battle for quality is new. And users are now willing to pay more for it, which hitherto had not seen,” said Carvalho.
According to the executive, it is easier for operators contesting users on price, since they have more quality for greater investments are needed in the network, which take years to complete.
“Operators in Brazil invest in networks at the same level operators abroad, from 17% to 19% of service revenues,” said Carvalho. “But the challenge is to grow faster in users in recent years, and may have greater difficulty of launching sites (antennas) than other countries.”